Correlation Between Ab Municipal and China Region
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and China Region at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ab Municipal and China Region into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and China Region Fund, you can compare the effects of market volatilities on Ab Municipal and China Region and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ab Municipal with a short position of China Region. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and China Region.
Diversification Opportunities for Ab Municipal and China Region
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between AUNTX and China is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and China Region Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Region and Ab Municipal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ab Municipal Bond are associated (or correlated) with China Region. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Region has no effect on the direction of Ab Municipal i.e., Ab Municipal and China Region go up and down completely randomly.
Pair Corralation between Ab Municipal and China Region
If you would invest 1,063 in Ab Municipal Bond on November 4, 2024 and sell it today you would earn a total of 9.00 from holding Ab Municipal Bond or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. China Region Fund
Performance |
| Timeline |
| Ab Municipal Bond |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab Municipal and China Region Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and China Region
The main advantage of trading using opposite Ab Municipal and China Region positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, China Region can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Region will offset losses from the drop in China Region's long position.| Ab Municipal vs. Nuveen Core Equity | Ab Municipal vs. Gmo Global Equity | Ab Municipal vs. Dreyfusstandish Global Fixed | Ab Municipal vs. Transamerica International Equity |
| China Region vs. Davis Financial Fund | China Region vs. Vanguard Financials Index | China Region vs. Mesirow Financial Small | China Region vs. John Hancock Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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